Economics
Margin of safety
Margin of safety is a financial measure of value, return, cost, or cash flow.
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MOS = (R − BE) / R × 100%
- 01Given
- 02Calculation
- 03Answer
What it means
Margin of safety is a financial measure of value, return, cost, or cash flow.
How it works and where it is used
Use this calculation for finding break-even points, safety margins, and sales volume required for target profit.